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International Journal of Academic Research in Economics and Management Sciences 2017, Vol. 6, No. 1 ISSN: 2226-3624 241 Analysis and Recommendation of Employee Engagement in PT. TI Indonesia Dematria Pringgabayu School of Business and Management, Institut Teknologi Bandung, Indonesia Darwis Agustriyana Business and Management Faculty, Universitas Widyatama, Bandung, Indonesia DOI: 10.6007/IJAREMS/v6-i1/2693 URL: http://dx.doi.org/10.6007/IJAREMS/v6-i1/2693 ABSTRACT Danone entered Indonesia for the first time, in 1998 when joined with PT. TI which produces water. The brands under PT. TI are Aqua, Mizone, and VIT. To prepare future leaders in key positions from internal and also to increase company branding for the fresh graduates, PT. TI is design Management Trainee under the Danone Group Indonesia. Management Trainee is an accelerated career program which contained to have value and culture same as the company, so the candidate can bring the company to the appropriate business. Management Trainee PT. TI begin from 2010. Over Management Trainee program, the HR division that serves to regulate the process of Management Trainee PT. TI is experiencing problem that is lacking of employee engagement, the detail are: there is a gap between the expectations of the company with the reality on the number of trainees who endure, the large number trainees who resign in Management Trainee program, and the impact of the resign trainees in the process of completion Management Trainee causes improvement projects unfinished and could hamper the development of the company. This research use qualitative method to find the root cause from these problem with using standardize open ended interview to employee of PT. TI who was recruited by the Management Trainee program and has been work at least 2 years. Standardize open ended interview has structured in term of the wording of the questions, always asked identical question, but the responses are open-ended. The result of interview uses coding method to analysis the root cause. Coding is a method to classify the information from all respondents with the same variable, then going into the parameters that have been determined. After coding, it show factors that make employee didn’t engage in the company, there are: uneven rotation method, lack of compensation given, and uneven knowledge mentor to the mentoring process. Therefore, this research suggest to PT. TI to rotate trainees during the MT program, change the structure of compensation, and create mentoring workshop. Within applying these suggestions is expected the trainees more engage to the company. So, the company’s goal to prepare the future leaders from the internal through Management Trainee program can be achieved. Keywords: Employee Engagement, Management Trainee Program.

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Page 1: Analysis and Recommendation of Employee Engagement …hrmars.com/hrmars_papers/...of_Employee_Engagement.pdf · company should increase employee engagement in company. Employee engagement

International Journal of Academic Research in Economics and Management Sciences 2017, Vol. 6, No. 1

ISSN: 2226-3624

241

Analysis and Recommendation of Employee Engagement in PT. TI Indonesia

Dematria Pringgabayu School of Business and Management, Institut Teknologi Bandung, Indonesia

Darwis Agustriyana Business and Management Faculty, Universitas Widyatama, Bandung, Indonesia

DOI: 10.6007/IJAREMS/v6-i1/2693 URL: http://dx.doi.org/10.6007/IJAREMS/v6-i1/2693 ABSTRACT Danone entered Indonesia for the first time, in 1998 when joined with PT. TI which produces water. The brands under PT. TI are Aqua, Mizone, and VIT. To prepare future leaders in key positions from internal and also to increase company branding for the fresh graduates, PT. TI is design Management Trainee under the Danone Group Indonesia. Management Trainee is an accelerated career program which contained to have value and culture same as the company, so the candidate can bring the company to the appropriate business. Management Trainee PT. TI begin from 2010. Over Management Trainee program, the HR division that serves to regulate the process of Management Trainee PT. TI is experiencing problem that is lacking of employee engagement, the detail are: there is a gap between the expectations of the company with the reality on the number of trainees who endure, the large number trainees who resign in Management Trainee program, and the impact of the resign trainees in the process of completion Management Trainee causes improvement projects unfinished and could hamper the development of the company. This research use qualitative method to find the root cause from these problem with using standardize open ended interview to employee of PT. TI who was recruited by the Management Trainee program and has been work at least 2 years. Standardize open ended interview has structured in term of the wording of the questions, always asked identical question, but the responses are open-ended. The result of interview uses coding method to analysis the root cause. Coding is a method to classify the information from all respondents with the same variable, then going into the parameters that have been determined. After coding, it show factors that make employee didn’t engage in the company, there are: uneven rotation method, lack of compensation given, and uneven knowledge mentor to the mentoring process. Therefore, this research suggest to PT. TI to rotate trainees during the MT program, change the structure of compensation, and create mentoring workshop. Within applying these suggestions is expected the trainees more engage to the company. So, the company’s goal to prepare the future leaders from the internal through Management Trainee program can be achieved. Keywords: Employee Engagement, Management Trainee Program.

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I. INTRODUCTION

Employment recruitment in industry contains of two types, there are internal recruitment and external recruitment. Sometimes, companies prefer having internal recruitment to the external one in order to maintain the value of the company and also to save costs, meanwhile recruiting people who have had experience in other company requires a greater cost. However companies often do external recruitment when they need someone to replace the crucial position which must be quickly filled. For internal recruitment in managerial position, it is also expected to get competent internal human resource that knows in running the business well and can be adapted quickly. One of the ways that can provide the expected candidates of that position is conducting Management Trainee (MT) for new employee. MT is the acceleration program which aims to prepare potential candidates to be able to occupy managerial positions within company in the future. Of course, this is a necessary for the company to manage the system of succession, in order to fulfill a vacant managerial position from internal sources. Because MT program is intended to make prospective leaders, so the process is quite different from the regular recruitment (recruiting new employee without MT process). In MT, the requirement of its participants is higher and the selection process is striker. MT Target is the fresh graduates which means they are born in 1980 – 1990’s. This generation is well known with challenge-addicted and easy to get bored. So, company needs to make strategy in order to retain their qualified MT participant (candidates of employee) and employee who already joined the company.

II. BUSINESS ISSUE EXPLORATION II.1 Business Issue Fresh Graduates interest about Management Trainee program as the beginning of their career, it triggers the company to create qualified Management Trainee program. The characteristic of Management Trainee is an accelerated career path with trainings that support knowledge of new employee. Seeing the growth of business at Fast Moving Consumer Goods (FMCG) creates PT. TI (PT.TIV), Indonesian Danone Group subsidiaries, also felt the need for Management Trainee and also to prepare a successor in the next few years. Management Trainee at PT. TI is still relatively new, because it just was started in 2010. Over Management Trainee program, HR division that serves to regulate the process of Management Trainee is experiencing some problems which summarized in business issues below: 1. There is a gap between the expectations of the company with the reality on the number

of trainees who endure. Supposedly in its first year, retention rate would be 90% (Exhibit 1) but in reality it’s only 59% (Exhibit 2).

2. The large number trainees who resign in Management Trainee program. The two biggest reasons are getting offering from another company (38%) and having failure at Management Trainee process. (Exhibit 3).

3. The impact of resign trainees in the process of completion Management Trainee causes projects improvement unfinished and could hamper the company development. In addition, the company suffered losses in terms of time and material because of unsatisfied recruitment. (Source: Manager of Research and Development PT. TIV).

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II.2 Research Objectives

Based on the business issue, there are the objectives of this research: 1. Identifying current practice of Management Trainee program at PT. TI. This objective is

expected to understand the whole process of current practice of Management Trainee. 2. Analyzing the favorable and unfavorable variables in Management Trainee PT. TI. It is to

see whether there has been a good initiative but not endorsed by the company or in fact there are initiatives that do not support.

3. Providing suggestion to retain and engage trainees in the program Management Trainee PT. TI. In order to answer the business issues in this research, it takes suggestions for making engage and retain in MT.

II.3 Theoretical Review

The company has high dependency to the employees to run the business. That’s why the company should increase employee engagement in company. Employee engagement is a psychological condition that shows commitment and loyalty to the company which is shown by working well and staying at company in long period. The engagement can be created by fulfilling several psychological conditions of the employee. The company has to maintain the whole work environment to create it. Based on Saks (2006), there are some psychological factors that can influence the engagement for employee: a. Job Characteristic b. Rewards and recognition c. Perceived Organizational and Supervisor Support d. Procedural and Distributive Justice e. Job Satisfaction f. Organizational Commitment g. Organizational Citizenship Behavior Organizational and Individual

Nowdays, companies willing to prepare the next leader from internal resources because they assumed that internal resources can face the competition in global scale. That’s why company need to educate their future manager properly. One of the way to get internal resources for future leader by conduct Manaegement Trainee (MT). MT is the acceleration program to prepare potential candidates to be able to occupy the company managerial positions in the future. It is necessary for the company to manage the system of succession, in order to fulfill a vacant managerial position from internal sources. Generally, after candidates pass MT, they will be in supervisor position, that’s why compare with the employee non MT, employee MT will gain high achievement faster. Karasar (2014) mentioned that the most commonly used for training programs are: orientation, internship, coaching and mentorship, project work, work simulation, teamwork, rotation methods, business academies, and web-based distant education programs which have been delivered huge importance in the recent years. As a Fast Moving Consumer Goods (FMCG) company, Unilever becomes a proper comparator for PT. TI in benchmarking session because both of them are in the same industry. Management trainee program Unilever is well known with Unilever Future Leader's Program (UFLP). Program UFLP divided into three activities, they are: a. Formal Learning (10%)

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b. Learn by experience (70%) c. Learn through people (20%)

II.4 Conceptual Framework

This conceptual framework is used to explain the flow of this research. The conceptual framework is based on the theoretical review and combined with the Employee Engagement and Management Trainee theory. This conceptual framework is suitable to analysis and overcome PT TI’s business issue that needs to increase the level of employee engagement in Management Trainee program. It has required components to generate recommended solution for PT TI because it’s considered from process learning and antecedents.

Job Characteristic

Reward & Recognition

Perceived organizational support

Perceived supervisor support

Procedural Justice

Distribution Justice

Job satisfaction

Organizational commitment

Organizational citizen behavior individual

Organizational citizen behavior organization

Job Engagement

Organization Engagement

EMPLOYEE ENGAGEMENT

ANTECENDENTSCONSEQUENCES

Formal Learning

Learn by Experience

Learn through People

PROCESS LEARNING

Process learning based on the program MT contains of three elements, they are: formal learning, learn by experience, and learn through people. The antecedent is the psychological condition of employee that should be accomplished by the company. If all process learning and antecedent element are fulfilled, it will build a strong employee engagement. Strong employee engagement can automatically bring impact to the company by increasing job satisfaction, organizational commitment, organizational citizen behavior individual, and organizational citizen behavior organization.

II.5 Research Methodology

This research use qualitative method. Qualitative is a type of research that concerns on qualities such as words or observations that are difficult to measure and lend themselves to interpretation or reconstruction (Glesne, 2011). The data is gathered by three method, there are: a. Observation During the internship, the researcher found some facts about the working condition and culture in PT. TI, including: the relationship between supervisors and employees, and also fellow workers, and facilities that support the work, flexi hours, etc. b. Secondary Data In this research, the secondary data which gather, such as the data of MT resigned from 2011-2015, Tool kit of MT Star and budgeting of MT Star in PT. TI obtained from the

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manager of Human Resource. In addition, to complete information the researcher also gathered some data from the internet. c. Interview This research using standardized open-ended interview which has structured in terms of the wording of the questions. Previously, interviews design already made that will be the basic question, but there may be additional questions if it is felt there is new information that would support the interview. The next phase is analysis data with coding method. Saldana (2008) defined the code is a word or short phrase that symbolically assigns a summative, salient, essence-capturing, and/or evocative attribute for a portion of or visual data and language-based. So, coding is a method to classify the information from all respondents with the same variable, then going into the parameters that have been determined. Factors consist of several variables which categorized into two codes (“favorable” and “unfavorable”). When each of these variables compared and consolidated, it begins to transcend the "reality" of data to progress toward the conceptual and theoretical.

II.6 Interview

Criteria of the respondents are the employees of PT. TI who were recruited by Management Trainee program and have been work at least 2 years. The number of respondents was 5 people from 36 people who still stay at company. The respondents come from different divisions to make this research more comprehensive. In order to make easier in analysis, respondents would be called in different initials.

Table 1. Division of Respondents

No. Initial Division

1. V Human Resource

2. W Industrial

3. X Supply Chain

4. Y Information System

5. Z Sales & Distributor

Using the open ended type standardization, it is necessary to create identical questions when asking the respondent. The questions are prepared based on the theory of Employee Engagement and Management Trainee in conceptual framework. A factor is split into a variable in order to facilitate the respondent to explain situation clearly. List of the questions can be seen in Exhibit 4.

II.6 Data Analysis

II.6.1 Process of Data Analysis

As described in conceptual framework, data analysis is used coding method. The interviews of five respondents would be classified into two codes, namely: 1. Favorable

It happens when the responses give a positive impression, such as feeling happy, satisfied, or neutral towards the question. And also, can define things clearly in detail.

2. Unfavorable

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It happens when the responses give a negative impression, such as a complaint, regret, or disappointment toward the question.

Response of each respondents for each factors would be coded (into favorable and unfavorable) and then valued in number. This number will determine condition of factors from respondents’ view and the type of suggestion strategy in the end, whether counted as needs to be maintained, improved, or modified type. Since there are 5 respondents of this research interview, then the number of code-favorable for each variable is in range from 0 to 5. 1. Type A

If all or majority of respondents showed code “favorable” (total of code favorable is between 4 or 5) to a variable, so that variable comes into type A. This type shows that the variable is already good, then just needs to be continued and sustained.

2. Type B If number of respondents who showed code “favorable” is 2 or 3, then this variable is grouped into type B. It means need improvements on it. Those numbers indicates that the variable was already good enough, but the improvement is required to get better condition in respondent’s view.

3. Type C If only 1 or no one of respondents that indicates the variable is favorable, then this is counted as type C. In this type, the variable is valued as a bad one and low of satisfaction for the respondents. It needs modification which can change the variable value to be a good one.

For data analysis, there were nine factors that being used in this research. There are: formal learning, learn by experience, learn through people, job characteristic, reward & recognition, perceived organizational support, perceived supervisor support, procedural justice, and distribution justice. Each of these factors consist of several variables, the questions is designed based on these variables. Thus, the results of the interview will answer variable condition and will eventually explain factor condition. Data analysis will determine what improvement and modification that needed for each factor. The result of analysis is given in suggestion and implementation which feasible to be done by company.

II.6.2 Data Result Analysis

The summary of interview result after being coded can be seen at Exhibit 5.

III. BUSINESS SOLUTION Based on exhibit 5, it can be concluded that several actions needed for further development in Management Trainee at PT.TIV to engage their employees for better leader in the next future. By doing further analysis and deeper interview study, it is found out that the company lack in some part of the MT program which are need to improve and change. This research will focus more on the type of improvement and modified. The solution will be generated according to the situation and real facts that happen in PT TIV in order to make it feasible to be implemented

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III.1 Rotation Program

Based on the interview of five respondents, two people has been rotation in unit division during the MT, their division are: Sales and Supply Chain (SC). Their rotations are determined by their division and supervisor. Three others who are in Human Resource (HR), Information Technologhy (IT), and Industrial have not done the rotation. Karasar (2014) suggested that rotation is one part that should be available in the MT. The aim of MT is preparing the next leader who comes from internal resource. The rotation is expected to make employee know the overall business processes in the company. When they become future leaders, they can give the appropriate decision which suitable with the company's business. In addition, the rotation will overcome boredom with monotonous work. Besides that, the benefit of rotation is to increase productivity, grow creativity, broaden different job functions, and also add the relation to different divisions. There are two types of rotation; they are interdivision (between different divisions) and inter unit (between different units in the same division). For some positions that need special requirement, it will be difficult to rotate interdivision, such as IT and SC. So, these divisions usually rotated in unit divisions. Meanwhile, the division that are in supportive tasks such as Marketing, Sales, HR, and the others, can do rotation between divisions. Therefore, within all benefit of rotation method, MT in PT. TIV should make a system to allow the entire trainee to get rotation in their function. Based on organizational structure in PT. TIV, there are seven functions which recruited by MT, they are: Finance, HR, Danis (IT), Sales and Distributor, Operational, Supply Chain, and Research and Development (R&D). Those functions can be place for rotation both interdivisions and inter unit in each division.

III.2 Compensation

One of the biggest reasons why people do not engage in the company is compensation. There are two things that are being considered to be changed:

1. Changing composition of compensation Compensation of PT. TIV contains of two types, take home pay (Salary, Meal allowance, Transport allowance, and Overtime allowance) and benefits (Health insurance, Vacation allowance, Business travel allowance, Annual bonus, Ration product, and Tunjangan hari Raya.) Based on respondent’s age, employee in MT program is in range of 23-27 years old. It’s different with employees outside the program MT that aged over 27 years old, most of them are married and consequently have more needs in life. By getting older, people more concern about something that can guarantee their life and their family life in long term. In this case, paid insurance (especially healthy and life insurance) by company takes big consideration for these employees to stay working there. The younger generation (include MT participants) tends to not greatly concern about the indirect benefits (especially health insurance) which they get yet. Respondent said that their health insurance compensation is too big. They more appreciate when get bigger take home pay. They can use their fresh money more on personal saving, parents’ or family allocation, investment, etc.

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Therefore, it’s suggested to modify MT respondent compensation. There are two ways which are proposed:

a. Modify percentage of take home pay and benefits. Enlarging percentage of take home pay and reducing the benefits could attract MT participants to stay in the program. Kinds of benefits which can be reduced are health insurance, annual bonus, and ration product. Amount of reducing compensation in these benefits are allocated to add the take home pay. So, the company should not change all of the compensation structure, it’s about the percentage of take home pay and benefits.

b. Give choice to select insurance package Seeing the insurance’s premium is covered by company, then employees just accepted it without determine anything about their insurance’s benefits. So, it’s proposed to make employees can choose their insurance package by themselves, company only pays health basic package. If employee wants more than basic package, they can submit their wanted one based on insurance’s offering. Cooperation between PT TIV and insurance’s company should give more interesting offering for employee to take. By doing this, company can reduce their expense of employee insurance premium and allocate that money into employee salary. This will make employees have more take home pay and insurance package as their needs.

After graduate from MT program and become employees, company can see the effect of this policy. If this strategy makes better engagement of employee, then it can be continued till certain condition such as employees get married or reach certain age (example at 30 years old). If company chooses to modify the percentage of compensation option, then after those certain conditions (getting married or reach certain age), company can take policy about the percentage as the previous one, since it is suitable with employee needs.

2. Requirement of MT participant During MT, PT.TIV focuses to seek fresh graduate who came from top University, like University Indonesia, Bandung Institute of Technologhy (ITB), Universitas Gajah Mada, and Sepuluh November Institute of Technology. By graduated from top university, fresh graduates usually have high expectations for salary from the company, especially with multinational company. The company put effort to engage the fresh graduates by fulfilling their expectation. If company do not do that, they will tend to resign easily and get another chance in other company since their educational background and achievement is great. Therefore, if the company can’t meet their salary expectations, it is advisable to target fresh graduates from common University, but still with the same requirement. Generally, fresh graduate from common university doesn’t have high expectation like the top university, so the company can maintain their expectations and make them engage with the company. There are 8 Indonesian universities which are listed in Quacquarelli Symonds World University, organization which makes rank of university in the world based on academic reputation, workers reputation, the students each faculty reputation, number of international faculty, international students, and the predicate of each faculty. It’s stated in table below.

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Table 2. The Eight Best University in Indonesia in 2015 based on: http://4muda.com/10-universitas-terbaik-di-indonesia-tahun-2015-versi-qs-world-university-dan-webometrics/

No Rank University

1 310-409 Universitas Indonesia (UI)

2 461-470 Bandung Institute of Technologhy (ITB)

3 551-600 Universitas Gadjah Mada (UGM)

4 701+ Airlangga University (UNAIR)

5 701+ Institut Pertanian Bogor (IPB)

6 701+ Diponegoro University (UNDIP)

7 701+ Sepuluh November Institute of Technology (ITS)

8 701+ University of Brawijaya (UNBRAW)

PT. TIV has already focused on recruiting fresh graduate from UI, ITB, ITS, and UGM. Based on Table 2, there are other four universities that not usual for PT.TIV to recruit, they are: Airlangga University, Institute Pertanian Bogor, Dipenogoro University, and University of Brawijaya. These Universities become recommendation for company to recruit their fresh graduate.

III.3 Workshop Mentoring

Interview results showed that three people feel their mentor knows their personal goals and values. In mentoring process, they do not only discuss about work issues, but also share their goals and values. It is purposed to make mentors clearly know their hopes and plans. Two other respondent assume that their mentors do not know about those things. Their mentor has never asked them related to their goals and values during mentoring process neither during their initial job interview. There is a suggestion to solve this problem by making workshop for mentorr who is a director or senior manager in division. HR as a division who responsible to create the Management Trainee will collaborate with consultant HR to conducted this workshop. The aim of this workshop is to introduce the mentoring program as a main activity to make participant of Management Trainee engage with company. In this workshop, the participants are expecting to have some skill and knowledge to deliver value of company to the mentee through the mentoring, coaching, and the other approach. Because of the participans is people who have a lot of responsibility, so this workshop should be conducted only for a day, with these agendas:

1. Inform the urgency of Management Trainee in company Before discussing about mentoring program, workshop participants (candidates of mentor) must be explained about urgency of MT for company. It should be emphasized that MT is needed to create next leader in future at managerial position from the internal. By doing this preface, workshop participants and also all involved personel in

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MT will put more attention and appreciation to MT program. The indicator of good support from company (especially from mentro) to MT is by welcoming the participants of MT. It will make trainee do their best effort into MT program.

2. Introduce mentoring program as a main part of Management Trainee In this session, participants will be explained about mentoring which is the most important part in MT. The introduction started by explanation of mentoring definition, followed by mentoring technique and mentoring impact.

3. Explain the right and duty of mentor By understanding participant’s busy activities as director or senior manager, mentoring session in MT can be less important to other agendas for them. So it needs to make they aware about right and duty as mentor in MT. It’s suggested that MT’s mentoring become one of KPI aspect for them so they can be more motivated to execute the mentoring.

4. Sharing about MT by participants and consultant There are two contents of sharing in this session: MT experience in each division (by participants) and MT standardization in company (by consultant/ trainer). Firstly, all participants will share about MT which has been held in their own division. This will make consultant, HR representation, and all participants know about existing MT’s mentoring in all divisions. Their sharing will be used in the next step. After that, the trainer will present the standard for MT (especially mentoring activities) also with the examples.

5. Creating mentoring standardization and customization at PT. TIV Consultant and HR will present the standardization mentoring program at PT. TIV which has been prepared. If there is any suggestion from praticipants, it can be considered to be the additional standard. After that, there is session for participants to create mentoring system in their own division, based on the standard given by HR and their division condition. Then their work will be discussed with HR and consultant until there is approval. This result becomes participants guidance as a mentor when next MT comes.

IV. CONCLUSION Based on the results of research, conclusions of research could summarize as follows:

1. Management Trainee PT. TIV recruits fresh graduates from several Top Universities in Indonesia. The process of recruitment starts from apply online, online assessment, focus group discussion, HR interview, interview Users / Vice President, Medical Checkup, and Offering. MT program held for one year. At the beginning, they should attend the induction for 3 weeks, it contains introduction about vision, mission, and business process, visit plan, academic training, and ending with booth camp for two days one night. After that, continued by job training in their division. They were given daily work and projects. The project is different for each people, depends on the system in their division. There are long-term and also short-term project. Total number of projects that given is at least three, according to the evaluation times they should do during the program. If they fail to deliver their project, then their contract is finished. During the program, they were assisted by a mentor (director), coach (senior manager / manager), and buddy (coworker). From 2011 till now, there are 5 batches MT PT.TIV. The existing condition is it has high turn over, indicated by low retention rate at the last batch by only 59%.

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2. In this research, it is known that employee engagement in the company is divided into two concepts, namely the learning process and antecedents (psychological condition). By then, there are 2 categories of code, “favorable” and “unfavorable”. Favorable variables that supporting MT program at the company consists of: business academies, mentoring, orientation and teamwork, project work, task identity, skill variety, autonomy, feedback, appreciation, training, self-development, challenging work, company’s response, right and duty, care employee opinion, facilitate, warning of mistake, and open discuss. While his unfavorable variables that can resist the MT program, namely: rotation program, compensation and employee goal.

3. Variables are grouped into 3 types: type A (should be maintain), type B (need improvement), and type C (need modification). This research then focus on type B and C. These are the suggestions about proposed improvement and modification: a. Conducting rotation program. It can be rotation between divisions or internal

divisions. b. Changing composition of compensation. It’s proposed in two choices: changing the

percentage between take home pay and benefits and offering insurance package to employees.

c. Organizing workshop for mentor. It’s aimed to prepare more qualified mentors for MT program. The most important contents in this workshop are the explanation of mentor’s right and duty, discussion about mentoring system, and standardization of mentoring in MT.

BIBLIOGRAPHY Antariksa, Y. 2007. Unilever Indonesia Nomer Satu se-Asia. Viewed 14 January, 2016 at http://strategimanajemen.net/2007/09/24/unilever-indonesia-nomer-satu-se-asia/. Avery, D.R, McKay, P.F, Wilson, D.C. 2007. Engaging the Aging Workforce: The Relationship between Perceived Age Similarity, Satisfaction, with Coworkers, and Employee Engagement. Journal of Applied Psychology, Vol 92, No. 6, 1542-1556. Banirestu, Hening. 2013. Sebanyak 95% Pemimpin Unilever Berasal dari Pengembangan Internal. Viewed 6 January, 2016 at http://swa.co.id/business-strategy/management/sebanyak-95-pemimpin-unilever-berasal-dari-pengembangan-internal. Bakker, A.B. 2011. An Evidence-Based Model of Work Engagement. Association for Psychological Science. 20(4), 265-269. Cartwright, S, Holmes, N. 2006. The Meaning of Work: The Challenge of Regaining Employee Engagement and Reducing Cynicism. Human Resource Management Review. 199-208. Catteeuw, F, Flynn, E, Vonderhorst, J. 2007. Employee Engagement: Boosting Productivity in Turbulent Times. Organization Development Journal. 151-157. Danone. 2014. 2014 Registration Document, Annual Financial Report. Paris: Danone. Danone. 2014. Sustainability Report, Strategy and Performance. Paris: Danone He, H., Zhu, W., Zheng. X. 2013. Procedural Justice and Employee Engagement: Roles of Organizational Identification and Moral Identity Centrality. Springer Science+Business Media Dordrecht. 681-695.Carter, R. 2010. Increasing employee engaement and performance: drama-based interventions. Training and Development in Australia. 14-17. Jalal, Octa Melia. 2012. Mengenal Siapa itu Generasi Y? Viewed 2 February, 2016 at https://manajemenppm.wordpress.com/2013/07/08/mengenal-siapa-itu-generasi-y/.

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Karasar, Sahin, 2014. Management Trainee Program of Turkish Airlines: Global Distance Education. The Turkish Online Journal of Educational Technology, Vol 13 issue 2. Lockwood, N.R. 2007. Leveraging Employee Engagement for Competitive Advantage: HR’s Strategic Role. SHRM Research Quarterly. Lucey, John.J. 2009. The Impact of a Communications Strategy and Five Step Survey Process. Management services. 9-15. Macey, W.H, Schneider, B. 2008. The Meaning of Employee Engagement. Industrial and Organizational Psychology, 3-30. Markos, S, Seidevi, M.S. 2010. Employee Engagement: the Key to Improving Performance. International Journal of Business and Management. Vol 5 No. 12. Mass mentoring partnership. 2008. Mentoring 101: An Introductory Workshop for New Mentors Training Handbook. Boston. Medlin, B, Jr Green, K. 2008. The Relationship among Goal Setting, Optimism, and Engagement: The Impact in Employee Performance. Alies Academies International Conference. 51-56. Narra, Vishnumurty. 2013. Employee Loyalty as A Determinant and Influencer of Customer Loyalty – A Study in Select Service Sector Organizations. International Journal of Management Research and Business Strategy. Vol 2, No 1. Narayanan, V.G, Raman, Ananth. 2004, Aligning Incentive in Supply Chains. Harvard Business Review, November,. Viewed 26 January, 2016 at https://hbr.org/2004/11/aligning-incentives-in-supply-chains#. Newland, S. 2012. Organizational Citizenship Behavior- Individual or Organizational Citizenship Behavior- Organization: Does the Underlying Motive Mater? Masters Theses & Specialist Project. Paper 1159. NN. 2016. 10 Universitas Terbaik di Indonesia Tahun 2015 Versi QS World University dan Webometrics. Viewed 24 January, 2016 at http://4muda.com/10-universitas-terbaik-di-indonesia-tahun-2015-versi-qs-world-university-dan-webometrics/. NN. 2015. Perusahaan Indonesia dengan Gaji Management Trainee Terbesar. Viewed 10 January, 2016 at http://suteki.co.id/perusahaan-indonesia-dengan-gaji-management-trainee-terbesar/. Root, J. Lannes, B. Booker, M. 2011. HR Readiness: A Growing Pain for Consumer Products Multinationals in Emerfing Markets. Bain & Company Inc. Ritchie, J. & Lewis, J. 2003, Qualitative Research Practice, London: Sage Publications. Saks, M.A, 2006. Antecedents and Consequences of Employee Engagement. Journal of Managerial Psychology, Vol. 21 No. 7. Saldana, J. 2009. The Coding Manual for Qualitative Researchers. London: Sage Publications. Wellins, R.S, Bernthal, P, Phelps, M. Employee Engagement: The Key to Realizing Competitive Advantage. Development Dimensions International, Inc. Seijts, G.H, Crim, D. 2006. What Engages Employees The Most or the Ten C’s Of Employee Engagement. Ivey Business Journal Online. Shuck, M.B, Rocco, T.S, Albornoz, C.A. 2011. Exploring Employee Engagement from the Employee Perspective: Implications for HRD. Journal of European Industrial Training. Vol 35, No.4. Turner, D.W., III 2010. Qualitative Interview Design: A Practical Guide for Novice Investigators. The Qualitative Report,15 (3), 754-760. The Future Leader @ Danone, Tool Kit for Successful Management Trainee Program, Unpublished manuscript.

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Unilever. 2014. Unilever Future Leaders Programme: A Big Impact Made by You.Viewed 6 January, 2016, 2014 at https://unilever.co.uk/careers-jobs/graduates. Xu, Jessica, Thomas, H.C. 2010. How Can Leaders Achieve High Employee Engagement? Leadership & Organization Development Journal. Vol. 32, No 4, 399-496.

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Exhibit 1. The expectation retention rate of PT. TIV

Exhibit 2. The Comparison Number of Trainees

Exhibit 3. The Reason of Resigning in Management Trainee

Time Working Retention Rate

After 1 year 90%

After 3 years 70%

After 5 years 50%

Year Total Trainee Total Trainee Resign Total Trainee Stay

% Retention Rate

2011 3 2 1 33%

2012 24 16 8 33%

2013 23 16 7 30%

2014 34 14 20 59%

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Exhibit 4. Interview Design

FACTOR VARIABLE QUESTION CONCEPT

Formal Learning Business Academies

What have you learn in the class?

MT

Learn by experience

Orientation What do you do during the induction in MT program?

MT

Teamwork

Project Work Can you describe about project do you get on MT?

Rotation Program Do you get rotation during MT?

Learn through People

Mentoring How is the process of coaching and mentoring during MT?

MT

Job Characteristics

Task Identity What are the tasks/jobs that you do?

EE

Skill variety Do you increase your skills as long as you work? If you do, what type of skills?

EE

Autonomy How much is your autonomy at work?

EE

Feedback Do your supervisor or coworkers often give feedbacks to the results of your work in MT?

EE

Rewards and Recognized

Compensation What do you think about the compensation you receive?

EE

Appreciation Does the company give appreciation to you? In what form?

EE

Training Do you get any training during your working period?

EE

Self-Development Do you perceive some self-development on yourself during work? In what form?

EE

Challenging work Are the tasks you get during your working period challenging?

EE

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FACTOR VARIABLE QUESTION CONCEPT

Distributive Justice

Company’s response

Do you feel that company gives you more positive responds when you contribute more to the company/ work harder?

EE

Procedural Justice

Right and duty Do you know about your rights and duty as an employee? Have you been complained about what you got (e.g. the compensation, facilitation)?

EE

Perceived Organizational Support

Care employee opinion

Does the company often respond to your opinion?

EE

Facilitate Does the company facilitates to support your work?

EE

Warning of mistake

Have you ever made a mistake? What did the company do toward your mistake?

EE

Perceived Supervisor Support

Employee goal Does your Supervisor know about your goals and personal values?

EE

Open discuss Is your supervisor, either at your present workplace or MT program, open to discuss your opinion?

EE

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Exhibit 5. Summary and Proposes Business Solution

FACTOR VARIABLE TYPE SOLUTION

Formal Learning Business Academies A Maintaining

Learn based Experience

Orientation A

Teamwork Maintaining

Project work A Maintaining

Rotation program Modified Rotation in MT program

Learn through People Mentoring A Maintaining

Job Characteristics

Task Identity A Maintaining

Skill variety A Maintaining

Autonomy A Maintaining

Feedback A Maintaining

Rewards and Recognized

Compensation Improvement Structure compensation design, Requirement system

Appreciation A Maintaining

Training A Maintaining

Self-Development A Maintaining

Challenging work A Maintaining

Distributive Justice Company’s response A Maintaining

Procedural Justice Right and duty A Maintaining

Perceived Organizational Support

Care employee opinion A Maintaining

Facilitate A Maintaining

Sanctions warning A Maintaining

Perceived Supervisor Support

Employee goal Improvement Workshop for Supervisor

Open discuss A Maintaining